Nasdaq Wins Bitcoin ETF Listing
The Winkelvoss Bitcoin Trust, an ETF sponsored by twin brothers Cameron and Tyler Winkelvoss, took another step closer to becoming a reality after a regulatory filing out Thursday noted the ETF will trade on the Nasdaq, assuming it comes to market.
The trust’s sponsor is Math-Based Asset Services LLC, which was formed in mid-2013.Bitcoin is a type of decentralized digital currency based on a peer-to-peer network and can be exchanged through computers internationally without a financial intermediary. The system was first introduced by developer Satoshi Nakamoto in 2009. [Bitcoin Inches Toward Legitimacy]
The brothers filed plans for the trust last year and “have invested in Bitcoin companies, including the exchange BitInstant, and at one point owned more than $64 million of virtual currency itself,” reports Rachel Abrams for DealBook.
“The Winklevoss’s proposed fund would buy one Bitcoin for every five shares. The company the two operate, Math-Based Asset Services, would be in charge of storing the fund’s Bitcoin holdings,” according to DealBook.
Thursday’s filing did not indicate how much the Bitcoin ETF will charge.
In February, the brothers formed the Winkdex, which will be used to price the value of assets held by the trust.
The crypto-currency hit a record high of $1,242 per coin on Nov. 29, 2013, but the currency has plunged due to pricing and technology issues. Mt Gox, a bitcoin exchange, halted withdrawals in February and subsequently became insolvent. [Winkdex Bitcoin Index Debuts]
The Winkdex quoted Bitcoin at $439.37 at this writing.
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
